AIG Ended Up Having To Pay Millions For The Duke Lacrosse Stripper Lawsuit

Email Article

Email Sent!

AIG ended up having to pay part of the multi-million settlements that Duke University paid to the three lacrosse stars who were accused of raping a stripper the team had hired for one of their parties, Crystal Gail Mangum, back in 2006.

Duke suspended the three accused students, Reade Seligmann, Collin
Finnerty, and David Evans, and the entire Duke Lacrosse team for two
games. And later, they forced the Duke lacrosse team coach, Mike
Pressler, to resign.

Then in court, everyone from the lacrosse team was vindicated. But of course, the three players' reputations were ruined.

And as a result, Duke eventually had to pay undisclosed settlements
to each of the students, and thanks to AIG's involvement, now we have a
better idea of how much was paid to each.

As its insurance provider, AIG insures Duke University against costs like investigating an accusation like Mangum's.

Duke had demanded reimbursement for costs tied to lawsuits by players
and another by the team’s former coach over the school’s role in
investigating the accusation, according to the November 2008 complaint.

The insurance giant offered the school $5 million in 2008, but
apparently that wasn't enough. The university filed a lawsuit requiring
AIG to reimburse them for the settlements it paid to the lacrosse
players.

Today, both AIG and Duke agreed to "dismiss" that lawsuit, according to Bloomberg.

I did a google image search for Reade Seligmann and look what came up - the image I made of Reade and Tony McDevitt. I hope Tony gets some money out of this!